The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. Keeping that in mind, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
Jabil (JBL)
Market Cap: $21.42 billion
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Are We Cautious About JBL?
- Annual sales declines of 7.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share lagged its peers over the last two years as they only grew by 6.5% annually
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Jabil is trading at $198.65 per share, or 18.2x forward P/E. Dive into our free research report to see why there are better opportunities than JBL.
Truist Financial (TFC)
Market Cap: $56.18 billion
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Do We Think Twice About TFC?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 2.5% over the last five years was below our standards for the banking sector
- Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
- Flat earnings per share over the last five years lagged its peers
At $44.13 per share, Truist Financial trades at 0.9x forward P/B. If you’re considering TFC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Rollins (ROL)
Market Cap: $27.89 billion
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.
Why Is ROL a Good Business?
- Annual revenue growth of 11.5% over the past five years was outstanding, reflecting market share gains this cycle
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 52.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Rollins’s stock price of $57.97 implies a valuation ratio of 46.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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